Weekly Report from Washington, D.C.
During the week of July 30, The Senate approved a fiscal year (FY) 2019 budget for the IRS. The Senate’s approved IRS budget provides less funding than the House-approved proposal. The IRS issued...
View ArticleKentucky Will Enforce Nexus Thresholds Beginning October 1
Kentucky updated a release on the sales tax nexus economic thresholds. The thresholds require no in-state physical presence for nexus and are like those in South Dakota v. Wayfair, Inc.. Kentucky’s...
View ArticleNew York Explains How to Report IRC Sec. 965 Repatriation Amounts
New York issued notices explaining the treatment of IRC §965 repatriation amounts for tax year 2017. Taxpayers must use their federal IRC 965 Transition Tax Statement when following the instructions in...
View ArticlePhiladelphia Will Follow Pennsylvania’s Bonus Depreciation Policy
Corporate taxpayers in Philadelphia will need to add back bonus depreciation. They will then be allowed to take normal depreciation. Pennsylvania Bonus Depreciation Philadelphia will follow the state’s...
View ArticleRhode Island Explains 965 Repatriation Tax Filing
Corporate taxpayers with IRC Sec. 965 income must file Schedule 965 with their 2017 Rhode Island income tax return. The taxpayer’s federal “IRC 965 Transition Tax Statement” must also be included with...
View ArticleIRS Finalizes Partnership Representative Regulations Under Centralized...
The IRS issued final regulations that govern the designation, authority, and replacement of a partnership representative under the centralized partnership audit regime. The regulations make a number...
View ArticleDC Emergency Bill Increases Sales and Use Taxes
The District of Columbia sales and use tax rate will increase to 6% under emergency budget legislation. Other sales and use tax rates are also increased in the bill. New Sales and Use Tax Rates The...
View ArticleMaine High Court Denies Pass-Through Owners Credit for Taxes Paid Other State
Owners of a pass-through entity could not claim a Maine personal income tax credit for taxes the entity’s business paid to New Hampshire. The credit for taxes paid to other jurisdictions is only...
View ArticleWashington Enforces Economic Nexus Sales Tax Thresholds October 1
Remote sellers doing business in Washington will be subject to an economic presence test for sales tax as of October 1, 2018. In light of the U.S. Supreme Court’s decision in South Dakota v. Wayfair,...
View ArticleIRS Extends Filing, Payment Deadlines for California Wildfire Victims
The IRS extended filing and payment deadlines for California taxpayers affected by wildfires. Thus, taxpayers in Shasta County may qualify for tax relief. Extended Filing and Payment Deadlines...
View ArticleGeorgia Updates SST Taxability Matrix and Certificate of Compliance
Georgia has updated its Streamlined Sales and Use Tax (SST) Agreement taxability matrix and certificate of compliance. The changes are effective August 1, 2018. The state’s matrix and certificate of...
View ArticleIllinois Amends Angel Investment Credit
Illinois enacted changes to the angel investment credit program. Taxpayers who qualify for the credit can apply it against Illinois: corporate income tax liability; and personal income tax liability....
View ArticleMississippi Issues Collection Guidance for Remote Sellers
Remote sellers with annual sales in Mississippi exceeding $250,000 should begin collecting tax no later than September 1, 2018. Mississippi has issued sales tax guidance for online sellers in the wake...
View ArticleNorth Carolina Issues Economic Nexus Threshold Guidance
North Carolina will require remote sellers meeting economic thresholds to collect sales and use tax. The department provides guidance in the wake of the decision in Wayfair v. South Dakota. Economic...
View Article2018 Americas Tax Awards
Wolters Kluwer Tax & Accounting Selected as a Finalist in the 2018 Americas Tax Awards CCH Axcess Recognized for Improving Firm Efficiency (NEW YORK, NY, August 8, 2018) — Wolters Kluwer Tax &...
View ArticleProposed Regs and Rev. Proc. for 199A Pass-Through Deduction Released
The IRS released long-awaited guidance on new IRC §199A, commonly known as the “pass-through deduction” or the “qualified business income deduction.” Taxpayers can rely on these rules for tax years...
View ArticleTax Court Had Jurisdiction to Determine Partnership Withholding Tax...
A liability stemming from the duty to withhold under Code Sec. 1446 was a partnership liability and was properly before the Tax Court in a partnership-level proceeding, as were penalties relating to...
View ArticleMassachusetts Expected to Enact Sales Tax Holiday Last Minute
The Massachusetts legislature has passed, and Governor Charlie Baker is expected to sign, a bill enacting a last minute sales tax holiday for this upcoming weekend, August 11-12, 2018. What Does the...
View ArticleIndividual’s Income Reconstructed Using Bank Deposits Method (Imperato, TCM)
An individual had unreported Schedule C gross receipts for one out of three tax years at issue. The taxpayer was the sole member of a limited liability company (LLC) that later converted to a...
View ArticleCalifornia Grants Property Tax Relief for Fires
The California State Board of Equalization (BOE) has issued a news release stating that taxpayers with property damaged by the recent fires and erosion may be eligible for property tax relief. To...
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